These person, a vegetable vendor, security guard and a farmer cannot be guarantors, to Mallya’s company borrowing Rs. 550 Crores from Bank of Baroda. Everybody can understand, but officers of Bank, who are sanctioning and monitoring loans worth Rs-100s to 1000s Crores cannot understand. If it is like that than it is really shameful.

But anyone, who has been associated with Banks, whether as Banker, or as borrow, or as consultant could very well understand that bankers knew, these persons are not actual guarantors. Actual guarantors were some other persons with similar names and were big shat corporate personalities. But while taking the guarantee, banker have not taken proper care in documentation and even did not know, who the guarantors were?

So, what is happening even often central governments guarantee through CGTMSE (CREDIT GUARANTEE TRUST FOR MICRO AND SMALL ENTERPRISES), a needy borrower, is finding it every difficult to get even very small loans of 1 lacs to 10 lacs.

So, not only the money earned and income is concentrated in few hands. But authorized or unauthorized, logical or illogical bank borrowings are also concentrated in few hands.